One of the company's marketing managers wants to use target-return pricing to determine the selling price of the chair.

The company has invested $500,000 in the company and wants a 20 percent ROI. The company assumes it will sell 10,000 chairs in the upcoming year.

Based on this information, what is the target-return price (HINT: you have to calculate unit cost first based on 10,000 sales)?

a) $90

b) $120

c) $100

d) $130